How commission works | Save on commission | California housing market | Best low commission companies | Methodology
📊 The data:
We surveyed local agents and found that the average real estate commission in California is 4.91%, which is less than the national average of 5.37%.
To sell a house in California worth $728,134 — the median home value in California — you’ll pay about $35,751 in realtor fees.
Realtor commission is usually the largest cost you'll face when selling your home — but you don't have to pay the full 4.91%.
Clever Real Estate could help you save thousands on commission by pre-negotiating 1.5% listing fees with full-service California realtors from top brokerages.
On that same $728,134 home — you'd pay just $24,800, up to 31% less than paying average rates.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
How real estate agent commission works
Average listing commission | 2.50% |
Average buyer's agent commission | 2.41% |
Total average commission | 4.91% |
There are usually two real estate agents involved in a home sale:
- The seller's agent (also called the listing agent), who represents the home seller
- The buyer's agent, who represents the person buying the home
Based on our research, the average commission rate for listing agents is 2.50% of the final home price and 2.41% for buyer's agents, for a total of 4.91%.
» LEARN: How do real estate commissions work?
Who pays realtor fees in California?
In California, home sellers pay real estate commission fees out of the final sale proceeds for both agents involved in a deal. Offering to pay for the buyer's agent's commission is an incentive for agents to show your home to their clients.
If you'd like to save on realtor commission fees, Clever can connect you with a top listing agent in your area. You'll pay just 1.5%, keeping more money in your pocket at the end of your sale.
How to save on realtor fees in California
Commission rates are not set in stone. In fact, we found that while 4.91% is the average in California, rates typically fall between 4.09% and 5.73%. You can save money by negotiating a lower rate with your listing agent or by working with brokerage that has a discounted commission model.
Listing commission range | 2.09%– 2.91% |
Buyer's agent commission | 2.00%– 2.82% |
Total commission range | 4.09%– 5.73% |
Tips for negotiating realtor commission in California
Whether you’re selling a beachside condo in San Diego, a historic bungalow in Los Angeles, or a vacation home in Lake Tahoe, it’s a lot simpler than you think to save thousands of dollars on your commission costs!
Negotiating realtor fees in California depends on two main factors: your situation and the housing market.
Factor | You may have an easier time negotiating low rates if... |
|---|---|
Your situation |
|
The California housing market |
|
While your personal situation will obviously vary, California real estate market conditions will affect all home sellers in your area.
In general, in a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more willing to lower their commission rates. The opposite is usually true in a buyer's market.
» LEARN: Find our top tips for negotiating lower commission fees
To judge the current state of your real estate market, look at these three factors:
- Months of inventory ⓘ
- Sale to list price ⓘ
- Home value trends ⓘ
If every factor points to California being a seller's market, then you may be in a good position to negotiate a lower commission rate with your agent. If market conditions are mixed or favor buyers, it may be more challenging to persuade your realtor to accept a cheaper fee.
The current state of the California real estate market
Factor | Trends | Indication |
|---|---|---|
Months of inventory | There's 1.5 months of housing inventory on the market | Seller's market |
Sale-to-list ratio | Homes are selling for 98.90% of their listing price | Seller's market |
Home values | Home values have risen 28.08% year over year | Seller's market |
» FIND: The average commission rates in more California cities:
Low commission real estate companies in California
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
These are some of the top discount and flat-fee MLS services in California.
The top discount real estate companies in California
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Clever Real Estate
Get Started💲 Listing Fee
1.5% (min. $3,000)
💰 Avg. Savings
$5,625
⭐ Avg. Customer Rating
4.9/5 (1,995 reviews)
Clever is a quick, easy, and free way to find a top-rated local agent. And, unlike many similar companies, Clever pre-negotiates big discounts on your behalf, so you can save thousands without sacrificing on service.
- Clever offers a free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX.
- You get multiple agent matches so you can interview, compare marketing plans, and choose the best fit.
- Clever pre-negotiates low rates on your behalf — you get full service for a low 1.5% listing fee.
- If you buy with Clever, you could get cash back after closing.
- You may not get matched with an agent from your preferred real estate brokerage.
- Agents may not provide premium services like drone photography and professional home staging.
Clever has a 4.9 out of 5 rating on Trustpilot, based on 1,844 reviews.
Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.
Redfin
Full Review💲 Listing Fee
1.5% (min. fees vary)
💰 Avg. Savings
$5,550
⭐ Avg. Customer Rating
3.7/5 (301 reviews)
Redfin offers real savings and is a proven brand. But sellers could compromise on service — especially agent experience and availability.
- If you buy and sell with Redfin, you'll get a 0.5% listing fee discount.
- Redfin gives its listings premium placement in its popular home search app.
- If finding the right agent is a top priority, you'll have limited options — Redfin only has a few agents in each of its markets.
- Redfin agents handle more customers at once than the average realtor, so they may not be able to provide as much personalized service.
Redfin has a 3.7 out of 5 rating (301 reviews) across popular review sites like Google and Yelp.
Redfin is available in 80+ U.S. markets (see all locations).
Home Bay
Full Review💲 Listing Fee
Varies by home price
💰 Avg. Savings
$8,450
⭐ Avg. Customer Rating
4.5/5 (519 reviews)
Home Bay's fees are too high to justify the limited service. Other discount options offer better value for the same price.
- On paper, Home Bay offers many of the same the services traditional agents provide
- It's a lot cheaper than selling with a traditional agent (although it's more expensive than similar options)
- Home Bay costs as much as many full-service brands, but it offers MUCH less value
- You'll have to pay a non-refundable 10% listing fee deposit when your house goes on the market
- On average, you'll get less than 90 minutes of contact with a licensed Home Bay agent throughout your entire sale
Home Bay has a 4.5 out of 5 rating (519 reviews) across popular review sites like Google, Trustpilot, and Zillow.
Home Bay is currently only available in California.
Prevu Real Estate
Full Review💲 Listing Fee
1.5% (min. fees vary)
💰 Avg. Savings
$2,450
⭐ Avg. Customer Rating
5.0/5 (449 reviews)
Prevu offers solid commission savings for buyers and sellers. But at certain price points, other discount brands may offer better value.
- Prevu's 1.5% listing fee saves sellers an average of $2,450 compared to a standard 3% commission rate.
- Eligible buyers get a commission rebate worth up to 2% of the home price.
- High minimum fees may limit your savings if you're selling a lower-priced home.
- Prevu has a small team, which limits your options if you don't hit it off with the first agent it sends you.
Prevu has a 5.0 out of 5 rating (449 reviews) across popular review sites like Google and Yelp.
Prevu is available in the following areas: CA, CO, CT, MA, NY, PA, TX, WA.
» LEARN: How do discount real estate brokers offer lower fees?
The top flat fee MLS listing services in California
Flat fee MLS services list your home on your local MLS for a low fee, often around $95–$2,495. The trade-off is that you'll have to handle almost the entire home-selling process yourself.
Congress Realty
Congress RealtyBest For
Sellers who want a lot of a-la-carte options
Price Range
$299
Pros:
- Congress Realty has a phone system that forwards any phone calls about your listing directly to you.
- You can request a free Comparative Marketing Analysis if you want a better idea of what homes in your area have sold for recently.
Cons:
- Congress Realty costs a lot more than competitors with similar MLS packages.
- You have to pay an extra $50 if you want more than four photos in your listing.
MLS Town
MLS TownBest For
Budget-conscious sellers who only need a basic listing
Price Range
$95-895
Pros:
- You can add on listing support and offer negotiation for an hourly fee.
- The basic listing comes with eight photos. Many listing packages under $100 include less than five photos.
Cons:
- The basic listing is only a three-month listing term. If you need more time, you have to upgrade to the Annual plan for a 12-month listing.
- You can't make changes to your listing or add open houses with the basic plan.
- This broker is currently only available in Northern California.
» MORE: What you need to know about flat fee MLS services.
Learn more
The Golden State is one of the most gorgeous states in the U.S., offering everything from the glitz and glamour of Hollywood, to the laid-back vibes of San Diego, to the down-to-earth lifestyle of Sacramento. That also means there are homes for sale at every price point, as well as perpetually high demand when it’s time to sell off and trade up.
As you might expect from a densely-populated state with a constant influx of new residents, California has a bit of a housing shortage, especially on the affordable end of the market. While this can frustrate potential buyers, it’s great for sellers, who can expect fast, lucrative offers soon after their homes hit the market. And the competition doesn’t just apply to buyers. In a market this hot, agents are often willing to cut you a deal on commission if it means getting the sale.
Clever has pre-negotiated low commission rates of only 1.5%, with California’s top agents. Contact Clever today to find out how much you can save on commission!
Methodology
We gathered our commission rate data from a survey of 630 of our partner agents. The survey asked about standard local rates for both listing and buying agents.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of March 2023
- Sale prices and sale-to-list ratios: Based on Redfin data as of February 2023 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of February 2023